Unfortunately, the M form is susceptible to a wide variety of possible mistakes. There are several reasons why these mistakes are made, not taking into account the many questions that need to be answered, often by expats who have only just moved to the Netherlands and need to file their M-form.

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1. M form not automatically received

Often, expats who move to the Netherlands don’t automatically receive an M-form. It is often unknown to expats that they need to file the migration form, so it is not uncommon that the P-form (for regular resident taxation) is filed instead of the M form, or no form is filed at all. If you aren’t sure whether to submit the migration form, then please contact us.

2. Refund potential

If you moved to the Netherlands and were employed part of the year, your employer will have taxed you monthly as if you were employed for the whole year. Therefore, a refund resulting from the migration form is not uncommon, depending on your situation. Feel free to contact us and we will check the refund potential in your situation.

3. Language

The M form is only available in Dutch. This adds another level of difficulty to the already extensive and complicated tax return. With google translate, or with help of a friend, it is possible to file it yourself if you do not know the Dutch language. However, mistakes are easily made. Many expats try themselves and find out later that they made a mistake, and consequently the tax return needs to be corrected.

4. Software

Nowadays, the M form can be submitted using the Mijn Belastingdienst website. However, when completing the tax return on Mijn Belastingdienst, the due amount or refund is not calculated. This means you could wait months before you know what the outcome of the tax return is. We file the tax return with our own software which directly calculates what you are entitled to, and therefore provides immediate clarity in regard to your tax liability.

5. Pre-filled information

The pre-filled information in the tax return often contains items that should not be declared in your tax return or does not contain items that should be declared. Therefore, it is very important to check whether you are filling your tax return correctly. Feel free to contact us if you are unsure.  

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It’s that time again: the Dutch tax return for 2023 can be filed again! For many expats residing in the Netherlands, completing their tax return seems an easy job, due to the pre-filled data in the tax return. However, these pre-filled data are often incomplete or even incorrect. It is important to always check these thoroughly and change or adapt the details if necessary. Here are some key points to keep in mind for your tax return 2023 Netherlands.

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International

For example, if you have assets abroad, there is a possibility that this information is not included in the pre-filled return. Or perhaps you lived abroad for a part of 2023. In this case, an M-form must be completed. It is easy to overlook tax benefits and optimisation opportunities in this tax return. Did you have a foreign employer and did you travel back and forth for your job? Then it is important to ensure that the 183-day rule is correctly applied in your situation and that you do not pay double tax.

Especially if you have international aspects in your situation, it is wise to have a tax advisor take care of the tax return 2023 who has experience with cross-border situations.

Tax interest rate increased

Whether you have international aspects to your tax return or not; it is wise to request a provisional assessment if you are expecting to pay a large due amount. This prevents tax interest being due; this is particularly important because a high tax interest rate of 7,5% will apply as of July 1st 2024.

We can assist you and request a provisional assessment on your behalf.

Foreign bank accounts in pre-filled returns

Is there a foreign account visible in your pre-filled return? The balance of foreign accounts is usually not visible in pre-filled returns. If an amount was present in the account in the last 12 years and this has not been included in your box 3 assets previously, it is wise to correct this on your own initiative. If you do not declare foreign assets, you risk a fine that can amount to 300%. Contact us and describe your situation – we will be happy to help.

Minimize wealth tax Netherlands

Once your 30% ruling terminates, you’ll be subject to regular Dutch taxation on your global wealth (Box 3 tax), which means declaring it correctly in your tax return is necessary, to avoid hefty penalties.

30 % ruling and forgot to opt for non-domestic taxation?

If you have the 30% ruling as an expat in the Netherlands, then you don’t need to declare your foreign assets. However, there have been some changes as to the 30%-ruling. This favourable ruling has been further restricted, being decided just before the elections end of last year.

The partial non-resident tax liability in combination with the 30% ruling is no longer possible. Existing 30% rulings are subject to transitional provisions, allowing the partial non-resident tax liability to remain possible until 2026. Additionally, the percentage of income benefit is being phased out. Starting from January 1st 2024, for 20 months, 30% of the salary remains tax-free. For the subsequent 20 months, a percentage of 20% is tax-free, and for the following 20 months, 10% is tax-free. For existing cases as of January 1, 2024, the old rule remains in force for the entire duration.

Be ahead and contact us on time about your tax return 2023 Netherlands! Get in touch today.

If the Tax Office issues you with a tax form or letter to request you to do so, this will have to be filed in any case. If you do not receive a letter, but you have to pay additional tax on your income or assets, you are also obliged to file a tax return. Obviously if you are entitled to a refund, it is in your own interest to file one. For a regular domestic tax return the deadline is May 1st. For a migration tax return (M-form) the deadline is July 1st. For both forms extension can be requested.

This year again we have heard of tax payers who received a letter from the Dutch tax authorities mentioning that they did not need to submit a tax return, although in their particular situation it would have been either mandatory to file a tax return, or they were entitled to a refund. Particularly the situation of someone living abroad owning Dutch real estate, we regularly see that no tax returns were issued or filed. As property is always taxable in the country where it is located, it is important that a tax return is filed, also in view of avoiding later corrections with penalties and interest. Furthermore the Tax Office in the main is not aware of your possible tax deductions. We therefore advise to have your refund possibilities checked.

The Tax Office has also mentioned that some details in the prefilled tax return may be incorrect, such as the life annuity premiums. It is always important to check the figures with the underlying documents. By the way, any electronic messages you receive from the Tax Office (Berichtenbox) are still also sent by regular mail.

From last year onwards we are requesting a continuous authorisation from the Tax Office for our clients instead of the annual authorizations. This may of course be canceled at any time again. If you receive a letter with a code for this authorisation, please forward it to us so that we can activate this in the system if you are happy with this. This authorisation is required, among other things, to receive copies of tax assessments from the Tax Office in our software program. However, we would still like to receive copies of the paper assessments you receive so that these are checked timely and appeal can be made, if necessary.

If applicable please also provide us with information about your crypto currencies for the tax return 2023. Crypto currencies are part of the assets and it is mandatory to declare this in Box 3. We need the value per 1-1-2023 and 31-12-2023. Even if you have not specified your crypto currency in previous years, it is wise to correct this on your own initiative. The same counts for any other undeclared foreign items. We can assist you in this too. The tax authorities have been authorized themselves to check what cryptocurrencies a tax payer has. This is stated in a new EU directive on data exchange. If it is not possible to view the historic value of your crypto currencies, please ensure you take a screenshot of your portfolio on the 1st of January each year.

With the new tax interest rules, from July 1st 2024 the Tax Office will charge interest on potential tax debts for the 2023 tax return. This interest amounts to 7,5% for the Income Tax and 10% for Corporate Income Tax. If you expect a high tax assessment and you want to avoid paying high interest, please contact us to request a provisional assessment.

If you own any cash money as per 1st of January 2023 that exceeds the threshold of € 596,–
(€1.196,– for fiscal partners), it must be declared in box 3. For 2023, this is mentioned in asset category 1, which means it is taxed at the same rate as bank accounts.

As previously communicated, from 2023 onwards the correction that was possible based on the rented status of a second property will be limited. Whereas until 2022, depending on the level of rent, the value could be reduced to maximally 45% of the WOZ-value, from 2023 onwards this will be a minimum of 73%. If you would like to know how this will work out in your situation, please contact our office.

These adjustments, together with the higher box 3 levy for real estate, mean that a house in box 3, whether rented out or not, will be taxed more heavily from 2023 onwards. It may therefore be advisable to request a higher provisional assessment. Do you have any questions about this? Contact our office and we will be happy to look at the options with you.

Also, it is proposed that the Box 3 tax will be adjusted again in 2027, based more on actual return on investment instead of fictitious return on your assets.

In the 2022 tax return it was still possible to choose between the new and the old system of box 3 levy. From 2023 onwards this choice is no longer possible which means the new levy is applicable. In this levy, bank accounts are taxed at a lower rate than other assets. The Tax Office assumes a fictitious return on the asset categories; for bank accounts this is 0,92% and for other assets this is 6,17%, and debts reduce this return with 2,46%. The tax-free threshold is calculated with a weighted average rate based on the breakdown of your assets into the different categories. Subsequently the net return is taxed at 32%.

There are still a number of uncertainties regarding the Box 3 levy, including the calculation of the double taxation in the case of foreign real estate. In addition, further court cases are ongoing regarding the consequences and practical effect of the Supreme Court ruling. We are closely monitoring developments and raising appeals where necessary.

We use Secudoc to guarantee the safe transfer of larger files and documents. If you want to send your files via Secudoc, please send us a request by email. You will then receive an email with a link that leads to the Secudoc upload page. After you upload your files, we can download your uploaded files only by using two-step verification. This provision is especially practical with a larger number of attachments or large files that cannot be sent in one e-mail.